(Reuters) – An adviser to the US Securities and Exchange Commission said on Friday that his subcommittee is likely to recommend new disclosures about diversity from registered investment advisers and other steps to improve minority representation in finance.
The ideas, which would need further approval, highlight the recent effort to highlight the small role of women and ethnic minorities in the money management industry, although they could also show the barriers faced by regulators in addressing social issues.
Friday's potential recommendations came from Gilbert Garcia, head of a Texas money management firm and chairman of a subcommittee studying diversity issues at the SEC's Advisory Committee on Asset Management. The acting chairman of the Washington Supervisory Authority had said on February 25 that it should review the disclosure requirements for diversity. race and gender for board members and salaried employees.
The subcommittee may also propose to the SEC to discourage the use of manager selection parameters that exclude minority-owned companies, which tend to handle fewer assets and have shorter results. "Many of the same participants who promote a closed financial system often do so under the guise" of management obligations, Garcia said.
Committee member Susan McGee, director of the Goldman Sachs affiliates, said after Garcia said that a key issue is how much regulation should be used to change public behavior.
"I struggle to use the regulations to drive initiatives like this," McGee said.
Only 59 Russell 1